WASHINGTON-With worries in some quarters that America will lose the third-generation mobile- phone market to Europe and Asia, the blame game has begun.
Leading the finger-pointing is John Stanton, chief executive officer of VoiceStream Wireless Corp. and chairman of the Cellular Telecom-munications Industry Association.
Stanton, addressing several lawmakers and congressional staff at a 3G spectrum briefing on Capitol Hill recently, lambasted federal telecom regulators for wireless policies he said have contributed to U.S. mobile-phone penetration that is lower than that in the United Kingdom, Italy, Finland and elsewhere.
“The U.S. is behind,” said Stanton. Stanton brushed aside a widely held view that mobile-phone subscriber penetration is higher in Europe and in other regions because their landline networks are not nearly as good as the one in the United States.
U.S. policy makers, in view of American high-tech global leadership, are especially sensitive to media reports about the U.S. lagging behind the world in 3G development .
As such, wireless lobbyists appear to be trying to capitalize on government hand-wringing by couching pet wireless issues they’re pursuing in terms of how they will further U.S. 3G competitiveness in the world market.
Stanton, among other things, blamed federal regulators for licensing delays; making geographic service areas too small; keeping the spectrum cap intact; and promulgating a short-sighted spectrum policy.
“I’m not trying to lay blame at the feet of the FCC or anyone else,” said Stanton.
Many of Stanton’s complaints and concerns about wireless policy coincide those voiced by CTIA at the FCC and on Capitol Hill.
That Stanton would come down so hard on U.S. telecom policy makers was surprising, given that the $56 billion Deutsche Telekom AG-VoiceStream merger must be approved by the Justice Department and the Federal Communications Commission.
Moreover, the deal has stirred up more than its fair share of controversy in Congress because of national security and competitive concerns. Current law forbids an overseas firm more than 25-percent owned by a foreign government from buying American telecom firms. But the FCC has the discretion to waive the 25-percent rule under its public-interest standard. Sen. Ernest Hollings (D-S.C.) and other lawmakers want to close that loophole.
“We need a long view of spectrum. … The licensing has to be simplified,” said Stanton. “The challenge is have a single, unified policy.”
Stanton also blamed state regulators for blocking his efforts to bring wireless phone service to rural areas, an effort he said would help bridge the Digital Divide. “That’s been undermined by a number of states,” said Stanton.
Gregory Rohde, director of the National Telecommunications and Information Administration, de-fended U.S. spectrum management.
“We do have a spectrum plan in this country, but it’s always changing,” he said.
The Federal Communications Commission is studying the availability of the 2.5 GHz and 1.7 GHz bands, two of three bands allocated for global 3G at the World Radiocommunication Conference in June.
Currently, the 2.5 GHz band is occupied by WorldCom Inc. and Sprint Corp.-each of which have invested $1 billion each in fixed broadband wireless licenses-and by religious and educational licensees.
The 1.7 GHz band is dominated by the military, but is also home to other federal agencies.
In the 700 MHz band, TV broadcasters are scattered throughout 30 megahertz of spectrum that is destined for 3G. Stanton, noting that broadcasters received spectrum for free, predicted that uncertainty over whether broadcasters will depart from the band will lower spectrum auction revenues for the U.S. Treasury.
While personal communications services licenses had to be acquired through FCC auctions, cellular telephone licenses also were given away by the government at no cost.
Not everyone shares Stanton’s pessimism about America’s 3G future.
Indeed, Irwin Jacobs, speaking on the same panel, was upbeat about U.S. leadership and conquering spectrum demand. “Technology is coming to solve these problems,” he said.
Jacobs and Stanton use competing wireless technologies. Jacob promotes CDMA technology, which he said makes efficient use of limited radio spectrum. Stanton, for his part, embraces European-based GSM technology.
Just the same, NTIA’s Rohde conceded that finding sufficient 3G spectrum in the U.S. will be tough. “I doubt the existing amount is enough for 3G,” he said.
